later on our exclusive interview with morgan stanley's ceo james gorman. do stay with us. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. building animatronics is all about getting things to work together. the timing, the actions, the reactions. everything has to synch up. my expenses are no different. receipt match from american express synchronizes your business expenses. just shoot your business card receipts and they're automatically matched up with the charges on your online statement. i'm john kaplan and i'm a member of a synchronized world. this is what membership is. this is what membership does. >>> welcome back. i'm seema mody. wall street keeping an eye out on apple suppliers which tend to move when we get an announcement from apple. new products could mean more business for these players. qualco

i'm pleased to have james gorman back at this table. welcome. >> thank you, great to be back. >> rose: let me begin this big deal. the third-biggest merger. tell me knew happens. >> well, firstly, it doesn't happen quickly. >> rose: yes. >> these things grow over a long period of time. they've been in a partnership for many years and there was a certain inevitability that this was going to come to closure at some point. we've been fortunate enough to serve verizon for many years and you put the deal together both in terms terms of the structuring but also the financing. can it get done? what's the market appetite for the paper coming from the deal and that's the process we're in right now. it's very exciting and frankly, it's a sign, i think, charlie, of continuing recovery of the u.s. economy. >> rose: the mergers and acquisition business. i'll talk about the economy in a minute but the mergers and acquisitions are growing. more and more people are looking at healthy acquisitions. >> conversations i'm having with c.e.o.s have gone from

. >> gorman got to preview the new situate praiting system. >> turn on and rove, -- off. >> and a different look. >> it's cleaner there is more white space, thinner fonts. just less clutter. >> look at that. >> is that the camera? >> oh, nice it brings new camera features. like the filters android smart phones had. >> ios lagged behind android but with this new ios 7, they've caught up. >> i like it so far. >> in short users say they think they're going to like the new software, just as soon as they can get do it down ld. >> how is it go something. >> going slow. >> a handful told us they got error messages. likely because so many people were trying to upgrade. >> i can't activate the phone. at and t's servers are down. >> but one guy wants to you upgrade as soon as possible. the district attorney. >> the new ios 7 is introducing an activation lock. >> rebd rendering a stolen phone useless. george gascone hoping to dli dry up the black markets. >> i think this think is going to reduce the number of thefts and injuries caused by this theft. but again it's not going to happen overnight. but d

later on cnbc, be sure to check out the exclusive interview with james gorman, "street signs" today,u see, 2:35 eastern time. >>> the pops and drops, the biggest movers. joe, urban outfitters, a big drop. >> it is. unfortunately, what you're seeing here is the comps coming in midsingle digits. i'm going to wait a couple of days. i'm going to buy this name. i like the strength we're seeing in an throe polg -- anthropology. >> fusion io. >> yeah, it had some chatter, some upgrade, as well as people at conferences talking about fusion. it had a very significant top, though, about 25%. i think it has a little more room to pull back before it goes higher. >> murph? pbh. >> it actually came out with decent earnings. it was the guidance that got people spooked. it continues to sell off. right now, we're sitting down about 7%. the stock ran up into it, and they just -- the guidance will not support the stock up here at these levels. >> weiss, potash? >> i don't know about potash, but putin is great for these stocks. and belarus, where they have arrested one of the heads of the russian compan

. >> michael gorman says zbaits on the selection committee. >> if he wanted it, it would be his. >> theng come as mid other changes including new loggoes for microsoft and bing and a new retail look with sprawling displays. >> best buy is the number one retailer of pcs in the united states. in fact, 70% of americans live within 10 minutes of a best buy. >> microsoft wants to invite you in to look and touch, putting personal back in personal computer autos world of pc tow computing one size no longer fits all. >> in front, microsoft surface. >> the most versatile tablets on the maurkt today. >> apps taking aim at ipad. but surface sales lagged after a drop. now they'll let you trade in your ipad. >> do you still think i'm pretty? >> microsoft will make more hardware with $7 billion purchase of nokia. >> priority one is mobile. >> lap tops and microsoft phones and x boxes can work together in incredible ways. >> lives are forming outside bay area apple stores for iphone 5 s goes on sale. take a look at palo alto. the 5 s goes on sale but you cannot preorder it. >> that is nice good, for h

wallace gorman, told bloomberg news, and i quote, the way these firms are managed, the amount of liquidity they have, the change in business mix it's dramatic. he thinks no chance. what do you think? >> well, the only thing that's really close to zero is the likelihood of a ceo of a wall street bank is accurate you know these are the same people, the wallets too big to fail too dwaing -- dangerous to fail banks, we don't need regulation. market knows best we have the best risk management program in the world, in history. and we also are by the way the best management in history. and what did they do? in about seven years they crashed the global financial system and almost caused a second great depression. and now these mouth pieces that only exist because of the federal government and u.s. taxpayers bailed them out, they're now saying ho the chance of another crisis it's impossible. trust us. we got this under control. well we've already seen and experienced the consequences of this type of arrogance and hubris, before. and the american people frankly can't afford it again. >> and the real

. >> michael gorman says zbaits on the selection committee. >> if he wanted it, it would be his. >> thehanging come as mid other changes including new loggoes for microsoft and bing and a new retail look with sprawling displays. >> best buy is the number one retailer of pcs in the united states. in fact, 70% of americans live within 10 minutes of a best buy. >> microsoft wants to invite you in to look and touch, putting personal back in personal computer autos world of pc tow computing one size no longer fits all. >> in front, microsoft surface. >> the most versatile tablets on the maurkt today. >> apps taking aim at ipad. but surface sales lagged after a drop. now they'll let you trade in your ipad. >> do you still think i'm pretty? >> microsoft will make more hardware with $7 billion purchase of nokia. >> priority one is mobile. >> lap tops and microsoft phones and x boxes can work together in incredible ways. >> lives are forming outside bay area apple stores for iphone 5 s goes on sale. take a look at palo alto. the 5 s goes on sale but you cannot preorder it. >> that is nice good,

. >> gorman got to preview the new situate praiting system. >> turn on and rove, -- off. >> and a different look. >> it's cleaner there is more white space, thinner fonts. just less clutter. >> look at that. >> is that the camera? >> oh, nice it brings new camera features. like the filters android smart phones had. >> ios lagged behind android but with this new ios 7, they've caught up. >> i like it so far. >> in short users say they think they're going to like the new software, just as soon as they can get do it down ld. >> how is it go something. >> going slow. >> a handful told us they got error messages. likely because so many people were trying to upgrade. >> i can't activate the phone. at and t's servers are down. >> but one guy wants to you upgrade as soon as possible. the district attorney. >> the new ios 7 is introducing an activation lock. >> rebd rendering a stolen phone useless. george gascone hoping to dli dry up the black markets. >> i think this think is going to reduce the number of thefts and injuries caused by this theft. but again it's not going to happen overnight. but d

it's made harrenson gorman, who lives with his mother on the navajo reservation in new mexico, think about college in a new way. >> i just didn't know anything about college. i always thought it was like high school. you go there, you get a degree. you get a job. >> do people at home, family or friends, even think about coming to a place like princeton or another selective school? >> i don't think they do. a lot of people in my community, they don't think they can get any farther than just community college. >> brown: the same is true for nebiyu kebede, who immigrated to minneapolis from ethiopia when he was ten years old. neither his father-- a parking attendant-- nor his mother-- a nursing home assistant-- attended college, although they've always told their son that he must. >> i've always known that i could go to a decent school, but that meant my state school. it wasn't an ivy league. nobody expected you to go that far. and because nobody expected that from me, i really didn't expect that from myself. >> brown: lower-income students are also at a disadvantage, because often thei

i want to play this clip from morgan stanley ceo james gorman from his views on the probability of anotherg bank collapse. take a listen. >> i would say the probability of it happening again in our lifetime is as close to zero as i could imagine. >> and you say that because? >> the way these firms are managed, the amount of capitol that they have, the amount of liquidity they have, the changes in their business mix, it's dramatic. >> that's just from september 5th. that's recently. and i feel comforted. you guys, that's right, right? that's correct? >> this is the policy of the obama administration, is the same policy is that of wall street, is extend and pretend. or fake it until you make it. if we say that everything is okay, if we tell everyone that everything is okay, everything is really okay. >> but it has been okay for five years. here is where the white house will come back at you. >> tell that to someone who's making less than $30,000 a year. >> all of that i agree with. but we're talking about the stability of the financial system. take away, for a second, the fact that we have t

we've got a big interview with morgan stanley's james gorman, he's, of course, a fellow australian andg to be an exclusive interview. lots of reasons to tune in. from 2:00 to 3:00 p.m. eastern time on "street signs." back to you on "power lunch." >> we'll see you at 2:00. well it's the list you wait all year for. where to retire. it's the fifth edition of america's best places to retire. it's out. number 10, colorado springs. that's a beautiful part of the world. 9, coachella valley, california. number 8, maryland's eastern shore. number 7, lancaster county, pennsylvania. 6, albuquerque, new mexico. number 5, ocean county, new jersey. number 4, portland, oregon. number 3, nashville. number 2, austin, texas. and drum roll, please. we'll just tell you. phoenix, arizona. the number one spot. the housing market hot once again as you know, but it may not be such a good thing for the average homeowner. is it possible that we're in another bubble? on the flip side, the wealthy have money to spend and cashing in on low mortgage rates. robert frank has that part of the story. hi, robert. >> hey

>> they go out there and pitch -- i think people underestimate, james gorman took a lot of flak whenfirst got in there about his strategy. pay for technology. he had to, you know, he took a back seat to goldman sachs in 2009. goldman sachs was making a lot of money trading. his strategy of making morgan stanley essentially an advisory firm, giving companies advice through banging franchise which is very good and giving small investors advice through massive brokerage network, biggest on wall street, that has incredible appeal to places like twitter. if you want to do ipo sell the shares through their brokerage network, 18,000 brokers. morgan stanley, it will be their time in the sun very soon. i just wonder when or if they can eclipse goldman sachs in that sort of premier investment banking -- adam: can you make the argument they actually priced appropriately the facebook ipo? traditionally ipo first year, forget it. you don't -- >> we have a stock chart of -- adam: sounded like lowest 17-point$0. now it is up almost at $42 again. >> that is morgan stanley's argument why they should

and james gorman from morgan stanley taking a bit of a victory lap with mary thompson. he took a lot of heat and came back and said give it time. here we are, time has passed. mobile is ascendant and facebook is as well. >> facebook, haven't sold any, biggest win i've ever had. >> the biggest win you've ever had in the charitable trust. >> i think so. >> apple, mid 20s. just kind of believed. why do you believe? same reason i told people to buy apple. my kid wanted a couple ipods. this is just an unassailable franchise. zuckerberg said he would not run intrusive ads. i know this is going to burn me but people seem to like the ads. i saw my daughter bought the red hot chili pepper t-shirt. >> people have short memories but i remember the week of the ipo, you are not a buyer at the ipo. >> well, 38. that was controlled by the machines. the machines have a terminator feeling over at the nasdaq. but zuckerberg has delivered. if you switched to underarmor instead of that outfit, i think he stock would go higher. he is a terrible dresser. if that matters. >> i agree. are thos

from social media platforms as you just heard and other print to have two branches of the federal gorman are every bit as difficult. the town of staff of the national archives and records administration looks forward to working through these issues. the long-term success of the national archives and historical record of our nation depends on our collective success. thank you for there virginity to appear today, no accord to finish your questions. >> before i begin my question -- i apologize. this is committee business that it now expects to have. mr. silver, you are represented. >> yes, sir. >> in your opening statement he said you wanted to be transparent. i have not put it up on the screen. i have in my possession a disturbing e-mail that comes from an individual working -- apparently working and shapiro that ashley asks a member of this committee not to ask questions of you. you familiar with this? consult with your counsel. >> i'm sorry, congressman. i am not at all familiar with that. i am told that we will look into it. >> well i want more than look into it. one explanation from it